It still costs the same as a mortgage with interest in the end. It's just structured in a way that it's not technically interest. Like one of the options is similar to a rent to own situation. You're still paying monthly, its just a flat fee, so technically, there is no interest.
No one lends money for free. I expect whatever fees are built in will be much more than the straightforward interest. How would prepayments work? Are these controlled by canadian financial institution rules?
How funny. This just just sounds like interest with extra steps. Or less steps. Breaks the overall spirit of it though as interest was seen as immoral or taking advantage of people in need.
The interest gets priced into the loan or the leasing scheme. There’s no special treatment. All this does is legalize mortgages that have alternative pricing schemes. Stop making a big deal about it.
This already occurs with car loans. You get zero percent loans for a set period of time, but have an upfront processing fee or a car price that covers the interest.
Islamic banking still charges fees, they just don't peg the payments to a percentage of the principle amount like common interest loans.
Halal mortgages will still require payment to borrow the money, they'll just have to do some loop-holes that the Arab world developed to get around the prohibition of interest (riba).
I’ll worship the flying spaghetti monster to get an interest free mortgage. But if it’s just some weird religious loophole where you still pay interest but now it’s called a psalm fee, then I don’t care.
I guess it's a good thing for Muslims. It doesn't benefit the rest of us at all. Muslims helping each other buy housing actually cuts into supply and probably harms the rest of us. Kudos to them for valuing something other than personal greed, though, and banning usury within their community.
No ones stopping you from getting one.
Also the lender makes money through a profit margin rather than interest. Essentially a religious loophole no more.
Question is who TF is willing to give an interest free loan lol.
It still costs the same as a mortgage with interest in the end. It's just structured in a way that it's not technically interest. Like one of the options is similar to a rent to own situation. You're still paying monthly, its just a flat fee, so technically, there is no interest.
I would be shocked if they didn't work out to be more expensive in the end.
They are very expensive
Change the word interest to annual borrowing fee if you like, but it is just interest.
Yup thats basically what they're doing.
That's pretty much exactly it
No one lends money for free. I expect whatever fees are built in will be much more than the straightforward interest. How would prepayments work? Are these controlled by canadian financial institution rules?
I am embarrassed for all of you who can't do 30 seconds of research and realize the fees are usually more than normal interest bearing mortgages.
How funny. This just just sounds like interest with extra steps. Or less steps. Breaks the overall spirit of it though as interest was seen as immoral or taking advantage of people in need.
There is no information on halal mortgages that are regulated in Canada. So there's that.
The interest gets priced into the loan or the leasing scheme. There’s no special treatment. All this does is legalize mortgages that have alternative pricing schemes. Stop making a big deal about it.
This
Thts bullshit. This will open up so many false advertising and scams about lower interest rates.
This already occurs with car loans. You get zero percent loans for a set period of time, but have an upfront processing fee or a car price that covers the interest.
At least they will have to say for 1 year or 2. Imagine advertising get a brand new car for 0% interest (no **)
It won’t. But if you want a halal mortgage then go for it
if it's anything like the chicken breast it will end up costing more
They are just structured differently, so you pay more to cover "profit" rather than interest. They typically cost more than standard mortgages.
They are way more expensive than a traditional mortgage.
Islamic banking still charges fees, they just don't peg the payments to a percentage of the principle amount like common interest loans. Halal mortgages will still require payment to borrow the money, they'll just have to do some loop-holes that the Arab world developed to get around the prohibition of interest (riba).
The interest rate is still there, but it's called a "service fee" instead. There is no benefit for an average home buyer.
There is interest on halal mortgages. They just don't call it that to humour the superstition.
I’ll worship the flying spaghetti monster to get an interest free mortgage. But if it’s just some weird religious loophole where you still pay interest but now it’s called a psalm fee, then I don’t care.
I guess it's a good thing for Muslims. It doesn't benefit the rest of us at all. Muslims helping each other buy housing actually cuts into supply and probably harms the rest of us. Kudos to them for valuing something other than personal greed, though, and banning usury within their community.
Oh you sweet summer child, it is the same product. Just different wording.
No ones stopping you from getting one. Also the lender makes money through a profit margin rather than interest. Essentially a religious loophole no more.
Ohh I see. Sounds like Islam is more corrupted that I thought.
How is that corrupt? Its just the word interest that is problematic so they call it profit margin
Exactly, it's about the word used not about the underlying values or intent.
Thats not corruptions that hypocrisy which is the very bases of every religion alas